Pan American Silver (PAAS) AI Stock Analysis

• Market Cap: $14.26B
• Dividend Yield: 1.92%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 32.5
• Beta (1Y): 1.61
• Revenue Growth: 22.18%
• EPS Growth: N/A
• Country: CA
• Employees: 9,000
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Silver
• EPS (TTM): 0.58
• Shares Outstanding: 362,189,500
• 10 Day Avg. Volume: 1,374,303
• 30 Day Avg. Volume: 1,105,031
• PEG Ratio: 0.18
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.42
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 14.45
• Enterprise Value/Ebitda: 2.73
• 1Y Price Target: $44.86
• Price Target Upside: 12.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 77 Outperform
• Price Target: C$44.00 ▲(10.80%Upside)

Pan American Silver demonstrates strong financial performance and positive technical indicators, supported by a robust earnings call and strategic corporate events. The high P/E ratio suggests growth expectations, while the solid dividend yield provides additional investor value. The company's strategic acquisition and sustainability efforts enhance its growth potential and market position.

Positive Factors

Earnings

PAAS reported strong Q1/25 results with significant cost beats to expectations generating record quarterly mine operating earnings.

Production

Pan American Silver reported preliminary Q4’24 silver production that beat BofAe and consensus, while Q4’24 gold production beat BofAe.

Sales Performance

The company beat EPS expectations driven by high sales volumes and low costs, marking a strong start to the year.

Negative Factors

Cash Flow

Free cash flow misses primarily due to high cash tax payments.

Valuation

PAAS is trading at a P/NAV of 1.13x, slightly above its historical multiple, and the shares currently reflect the value, leading to a Market Perform rating.

Pan American Silver Business Overview & Revenue Model

Company Description

Pan American Silver Corp. is a Canadian-based mining company primarily engaged in the exploration, development, extraction, processing, refining, and reclamation of mineral properties. Established in 1994, the company is one of the world's largest primary silver producers, with operations and projects across North and South America. Pan American Silver's core products include silver, gold, zinc, lead, and copper. The company's strategic focus is on the sustainable production of precious metals, leveraging its expertise to optimize operations and expand its resource base.

How the Company Makes Money

Pan American Silver generates revenue through the sale of precious and base metals extracted from its mining operations. The company's primary revenue stream is the production and sale of silver, although it also earns significant income from gold, zinc, lead, and copper. The company operates several mines across various countries, including Mexico, Peru, Argentina, Bolivia, and Canada, which contribute to its production volumes. Additionally, Pan American Silver may engage in joint ventures and strategic partnerships to enhance its exploration and production capabilities, as well as to manage risks associated with fluctuating commodity prices and geopolitical factors. The company also focuses on cost management and operational efficiency to maximize profitability.

Pan American Silver Financial Statement Overview

Summary

Pan American Silver exhibits a solid financial performance marked by strong revenue growth, improved profitability, and robust cash flow generation. The company has effectively managed its cost structure and maintained a strong equity position with low leverage. Despite past challenges reflected in negative net income, the recent financial trajectory is positive, indicating stability and growth potential in the silver industry.

Income Statement

Pan American Silver has shown a strong revenue growth with a TTM (Trailing-Twelve-Months) Total Revenue of approximately $2.99 billion, up from $2.82 billion in the previous year, indicating a positive trend. The Gross Profit Margin improved significantly to 23.72% in TTM from 19.45% in the previous year, suggesting better cost management. Net Profit Margin also increased to 10.42% in TTM compared to 3.95% in the previous year. However, the company experienced negative net income in earlier years, highlighting past profitability challenges. The EBIT Margin improved to 23.67% in TTM, indicating enhanced operational efficiency.

Balance Sheet

The balance sheet shows a solid equity position with Stockholders' Equity at $4.82 billion. The Debt-to-Equity Ratio remains low at 0.17, indicating prudent debt management. The Equity Ratio stands at 66.84%, reflecting a strong equity base compared to total assets. However, fluctuations in total assets and liabilities over the years suggest some instability in financial structure. Overall, the balance sheet reflects a stable financial position with low leverage.

Cash Flow

Pan American Silver's cash flow performance is robust, with a TTM Operating Cash Flow of $837 million and Free Cash Flow of $533 million, reflecting strong cash generation capabilities. The Free Cash Flow Growth Rate is notable at 33%, indicating improved discretionary cash availability. The Operating Cash Flow to Net Income Ratio is 2.69 in TTM, showcasing efficient cash conversion from earnings. The company has managed capital expenditures effectively, supporting growth and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.99B	2.82B	2.32B	1.49B	1.63B	1.34B
Gross Profit	709.78M	548.50M	214.60M	48.36M	367.94M	360.18M
EBITDA	1.27B	1.05B	476.80M	-7.18M	554.87M	554.20M
Net Income	311.56M	111.50M	-103.70M	-340.06M	97.43M	177.88M
Balance Sheet
Total Assets	7.21B	7.20B	7.21B	3.25B	3.52B	3.43B
Cash, Cash Equivalents and Short-Term Investments	923.00M	887.30M	440.90M	142.34M	335.27M	279.06M
Total Debt	804.40M	803.30M	801.60M	226.84M	45.86M	33.56M
Total Liabilities	2.38B	2.49B	2.44B	1.05B	882.58M	828.04M
Stockholders Equity	4.82B	4.70B	4.76B	2.20B	2.63B	2.60B
Cash Flow
Free Cash Flow	533.10M	400.80M	71.20M	-242.78M	148.63M	283.76M
Operating Cash Flow	837.06M	724.10M	450.20M	31.91M	392.11M	462.31M
Investing Cash Flow	-14.42M	-32.60M	397.90M	-255.40M	-186.66M	-83.92M
Financing Cash Flow	-222.54M	-225.20M	-551.80M	52.97M	-85.91M	-329.59M

Pan American Silver Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PAAS, the sentiment is Positive. The current price of 39.71 is above the 20-day moving average (MA) of 38.67, above the 50-day MA of 35.98, and above the 200-day MA of 33.17, indicating a bullish trend. The MACD of 1.21 indicates Positive momentum. The RSI at 61.14 is Neutral, neither overbought nor oversold. The STOCH value of 52.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PAAS.

Pan American Silver Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FVI	78 Outperform	$2.74B	12.45	12.07%	―	30.33%	―
PAAS	77 Outperform	$14.26B	32.45	6.56%	1.92%	22.18%	―
AG	64 Neutral	$5.33B	―	-4.57%	0.29%	38.49%	-77.99%
AYA	58 Neutral	C$1.72B	152.08	-4.59%	―	88.60%	-684.16%
MAG	57 Neutral	C$2.94B	22.99	16.27%	11.44%	―	61.66%
DSV	48 Neutral	$2.44B	―	-24.80%	―	―	-26.88%
Sector *	44 Neutral	C$958.76M	-6.68	-13.31%	2.79%	17.55%	-32.28%

Pan American Silver Corporate Events

Pan American Silver Releases 2024 Sustainability Report Highlighting ESG Achievements

Pan American Silver Corp. has released its 2024 Sustainability Report, highlighting significant achievements in environmental, social, and governance (ESG) performance. The company has reduced water usage, surpassed greenhouse gas emissions reduction targets, and contributed significantly to local communities. It has also made strides in gender diversity and supplier evaluation. The report aligns with global sustainability standards and marks the company’s 15th annual sustainability report. Pan American’s ESG efforts have been recognized by S&P Global, ranking it in the top 7% of the Metals & Mining industry, and by MSCI Inc., which upgraded its ESG score.

The most recent analyst rating on (TSE:PAAS) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Pan American Silver stock, see the TSE:PAAS Stock Forecast page.

Pan American Silver to Acquire MAG Silver, Boosting Silver Portfolio

Pan American Silver Corp. has announced a definitive agreement to acquire MAG Silver Corp., enhancing its strategic interest in the Juanicipio Silver Mine. This acquisition, valued at approximately $2.1 billion, will significantly strengthen Pan American’s silver portfolio by adding a high-grade, low-cost silver mine. MAG shareholders will receive a premium on their shares and gain exposure to Pan American’s diversified assets, including future growth opportunities. The transaction is expected to solidify Pan American’s position as a leading silver producer in the Americas, offering substantial exploration potential and financial strength.

Pan American Silver Reports Favorable Shareholder Meeting Outcomes

Pan American Silver Corp. announced the results of its annual general and special meeting, where shareholders voted in favor of all proposed matters. These included setting the number of directors at nine, electing management’s nominees as directors, appointing Deloitte LLP as auditors, and approving the company’s approach to executive compensation. The meeting saw a high level of shareholder participation, with 68.52% of the company’s issued and outstanding shares represented. This outcome reflects strong shareholder support and is expected to positively impact the company’s governance and operational strategies.

Pan American Silver Reports Strong Q1 2025 Results with Record Earnings

Pan American Silver Corp. reported strong unaudited financial results for the first quarter of 2025, with basic earnings of $0.47 per share. The company achieved record mine operating earnings of $250.8 million and free cash flow of $112.6 million, driven by lower costs and higher metal prices. The company remains on track to meet its 2025 guidance, with expectations of increased production in the coming quarters. Key project updates include ongoing exploration and development efforts at the La Colorada mine and Skarn, as well as a focus on shareholder value through dividends and share repurchases.